Bill No. 1187 amends the Oklahoma Employees Insurance and Benefits Act by modifying the opt-out provision for state health insurance. Specifically, it allows active employees who are eligible to participate in the state's basic plan to opt out of the health and dental basic plan options while retaining life and disability benefits. The amendment removes the requirement for participants to be covered by a separate "group" health insurance plan, simplifying the criteria for opting out. Instead, employees must provide proof of coverage by a separate health insurance plan without the group designation.

Additionally, the bill stipulates that employees opting out will receive a payment of $150 in lieu of the flexible benefit amount they would otherwise be eligible for. Any savings generated for the state from employees opting out of health insurance coverage will be retained by the state. The effective date for this amendment is set for November 1, 2025.